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Minimising the risks of corporate insolvencies as a result of the COVID-19 Pandemic: Access to Support Schemes set up by the Mauritian Government
As the COVID-19 pandemic continues to cripple countries across the globe, Mauritius has unfortunately not been spared.
Despite having one of the strictest sanitary protocols in the world, Mauritius is currently in the middle of a second wave of the pandemic, which will bring about further uncertainties and potentially impact the the prospects of the island’s economic recovery.
Since March 2020, the Mauritian Government has been swift in announcing a series of measures aimed at mitigating the economic risks associated with the pandemic.
In the same vein, the Ministry of Finance, Economic Planning and Development has, since August 2020, announced the setting up of a “Guichet Unique” which aims at facilitating access to the different support schemes available to businesses.
In these unprecedented times, access to these support schemes is key to alleviating cash flow difficulties linked to sharp declines in revenue, and generally to minimise the economic consequences on businesses to avoid this second wave of the pandemic turning into an unfortunate wave of corporate insolvencies.
The Guichet Unique will facilitate access to the following main schemes aimed at entities facing difficulties as a result of the consequences of COVID-19:
1 | Bank of Mauritius | Special Relief Programme for Banks | A Special Relief Amount of Rs 5 billion available through commercial banks to meet cash flow and working capital requirements. |
2 | State Investment Corporation | Equity Participation Scheme | An Equity Participation Scheme for working capital requirements, expansion and renovation to assist enterprises with an annual turnover exceeding Rs 250 million. |
3 | Investment Support Programme Limited (ISP) | SME Factoring Scheme | A reduced interest rate of from 2% instead of 3.9%. for companies with annual turnover of up to Rs 50 million. |
Leasing Equipment Modernisation Scheme (LEMS I, II, III) | A reduced interest rate ranging between 2.5% and 3.35% per annum for companies with annual turnover ranging between Rs 50 million and Rs 1.5 billion. | ||
Corporate Guarantees to banks | Issue of corporate guarantee to commercial banks to enable them to grant loans to companies on a case-to-case basis. | ||
4 | SME Equity Fund Ltd | Equity Financing | Minimum return dividend rate requirement on equity /quasi-equity financing reduced from 6% to 3%. Thereafter, normal conditions and dividend rate of 6% will be applicable. |
5 | Development Bank of Mauritius | COMPANIES WITH AN ANNUAL TURNOVER OF UP TO 10M: | |
Enterprise Modernisation Scheme (EMS) | Leasing facilities of up to Rs 1 million. A reduced interest rate of 1.75% p.a. Repayment over 5 years. | ||
Revolving Credit Fund | A Revolving Credit Fund of Rs 200 million to help ease cash flow difficulties up to Rs 1 million with repayment over 2 years. Interest not payable up to 30 June 2021, then at a rate of 1.5% p.a. thereafter. Repayment of up to 3 years. Moratorium up to 30 June 2021. | ||
COMPANIES WITH AN ANNUAL TURNOVER OF UP TO 50M: | |||
COVID 19 Special Support Scheme | Unsecured loan of up to Rs 1 million. Interest rate of 0.5% p.a. Repayment of period of 5 years including a moratorium of 1 year on capital and interest. | ||
SME Interest free loan scheme | Interest free unsecured loan of Rs 100, 000. Moratorium of 5 years on capital repayment. Repayment over 3 years after moratorium. | ||
COMPANIES WITH AN ANNUAL TURNOVER OF UP TO 50M: | |||
Support to Distressed Enterprises | Financing of up to 90% of project cost up to a maximum of Rs 10m to meet restructuring cost, investment in new equipment, digitalisation of operations etc.Interest of 0.5% p.a. Moratorium of 2 years. Repayment over 7 years. |
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